Lawsuit against pension cuts: Insurers are threatened with a BGH decision

Lawsuit against pension cuts: Insurers are threatened with a BGH decision

According to a report by www.fr.de, pensions in private pension schemes are often reduced long after the contract has been concluded. Insurers are citing declining returns on the capital market. However, a regional court in Cologne has ruled that such cuts may be unlawful. The consumer advice center has now filed a lawsuit against four large insurance companies and is seeking a decision from the highest court.

Affected clauses in some contracts for private pension provision allow insurance companies to reduce the pension to be paid out later if the life expectancy of the insured person increases significantly or the return on investments does not meet expectations. But the court ruled that such clauses can be invalid if the agreed pension cannot be seen as guaranteed.

The consumer advice center is seeking a decision from the highest court and has filed lawsuits against the insurance companies Allianz, Axa, Zurich Deutscher Herold and LPV Lebensversicherung. Their goal is to send a signal and encourage other affected people to defend themselves against this practice.

The consumer advice center had already won a lawsuit against another clause in many Riester policies in November. The Federal Court of Justice ruled that costs that arise before payment begins must be transparent enough and represent an unreasonable disadvantage for consumers if they are not.

The Riester pension has long been criticized, particularly due to high fees and low interest rates. The current lawsuits and litigation could pose new challenges for the insurance industry and lead to changes in contract terms and conditions. Insurance companies may be forced to formulate more transparent and consumer-friendly clauses to avoid legal consequences. In the long term, this could lead to an improved legal and financial position for consumers with regard to private pension plans.